Caustic soda prices under pressure

Source: EUWID

11 Apr 2012 −

Price negotiations in the caustic soda sector are in full swing. Suppliers fear that the increases achieved at the beginning of the year could vanish in the second quarter.

Manufacturers of caustic soda (NaOH) are facing the threat of a reduction in price in the second quarter. Industry experts report hectic times shaped by tough negotiations. Scattered announcements of price increases with effect from April are said to have been shelved. In retrospect, these appear to have been an attempt to hold back the incipient downhill trend in prices.

The talks at the end of March led to some prices being rolled over while suppliers are now said to be feeling marked pressure on prices, which they generally have no option but to yield to. The contract talks were due to continue after Easter, however, as there are apparently still some issues to deal with.

As things stand at the moment, the price increases achieved in January are in the throes of vanishing into thin air in the second quarter. Insiders have also realised that prices at the upper end of the scale could suffer greater reductions than those at the lower end.